William Blair downgrades Tempus AI on valuation after rally

William Blair analyst Andrew Brackmann downgraded Tempus AI (TEM) to Market Perform from Outperform without a price target The stock in premarket trading is down 3%, or $2.09, to $69.12. The shares are up 92% from the initial public offering price of $37 and up 111% year-to-date, the analyst tells investors in a research note. The firm says the rally comes as investors looked past Tempus AI’s slight miss to Q4 revenue consensus, but “follows a momentum trade” fueled, in part, by Nancy Pelosi purchasing 50 call options in mid-January and the Trump Administration’s major investment in artificial intelligence infrastructure through the Stargate initiative. However, neither of these updates are expected to impact the underlying financial picture for Tempus in the near term, contends Blair. It believes the shares are now trading at or near the firm’s estimate of fair value.